The process of buying and selling shares in Australia is actually rather simple. These days the hardest part is setting up the trading account with your broker.

In the past, you could setup an account over the phone and start trading immediately. Before I go through the steps on how to purchase ASX shares, it is important that every new share investor asks themselves this question. If it's to make "a quick buck" then you're looking in the wrong direction. People forget that buying stock in a company means you are actually buying a PART of that company. It's just the same as owning part of the local grocery store. By looking at every investment in this way, it forces you to step back and re-evaluate whether you are buying for the right reasons.

You will have complete control over each individual investment.

Financial Planners often push this avenue as they aren't experts on specific stocks, but instead follow the "time in market" over "market timing" philosophy. They can recommend a portfolio suited to your risk tolerance and invest accordingly. It is at a set price as specified in the Company Prospectus.

This is simply the transfer of ownership of shares, normally done between family members or different trading accounts for the same person.

This is where they offer shares in the company at usually a discounted price to the current market price. The rest of this article refers to this type of purchase.

Gone are the days of calling your broker and your order being shouted out over a chaotic trading floor. These days it is a quiet endeavour. Everything is done electronically, so either you manually enter your trades online, or your stockbroker does it on the other end of the phone.

That's the reason they are so cheap.

If you make a mistake or if you hit the wrong button, you are liable for any loss that may occur due to your mistake.

The benefit is that if you know exactly what you're doing, you will save money. Full-Service Stockbroker - Gives you specific advice on what to shares to buy and the price to pay.

Top 10 stocks Australians are buying - ASX

The transaction costs are higher as they provide a service, typically in the range of 1. Another benefit of using a full-service broker is that your brokerage fee is negotiable. Higher value orders and clients who trade regularly typically receive a lower brokerage percentage fee. Online - Cheap and great for the experienced trader or those who know exactly what they're doing. Full-Service Stockbroker - Receive specific advice. Great for those wanting to be told which shares they should be buying or selling.

There are countless investment strategies you can follow to select which shares to buy, though they will usually fall into three categories.

10 top shares to buy in | Motley Fool Australia

Technical Analysis - Using charts to to make stock selection decisions. This strategy is normally used with a shorter investment time-frame. Fundamental Analysis - Scrutinising the "books" of a company PE Ratio, Dividend-Yield etc. Stock Tips - Whether from friends, brokers or investment newsletters, this still remains one of the most commonly used strategies. Visit the stock tips page for more information. Although the exact steps are different for each broker, the general steps required are listed below and correlate to the number in the image.

The secret is determining how many sellers there are and what price they are sitting at. If there are very few sellers make money with a review blogger blog-yuwie-make-money.blogspot.com your specified price, it may be prudent to pay a little more to ensure you receive your full orders worth.

If there chatswood westfield trading hours australia day an abundance of sellers, it may be worth holding out until the end of the day before making your purchase.

This will also mmo stock market game you to see the Dow Jones Futures and get an indication as to how the US share market will best buy asx shares that night. Bb binary options is highly correlated to the Australian Stock Market.

A full-service broker is exactly that. They will or should do everything for you. If you have a good relationship with your broker, they will know your risk tolerance and what type of shares you are interested in.

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They will also give you specific price recommendations as they have the market depth in front of them the list of buyers and sellers currently in the market and can therefore recommend the optimum price to buy or sell your shares at. If stock market almanac 2016 pdf best buy asx shares come across a full-service broker who is not meeting your needs, or you simply do not feel comfortable with them, then you should change broker until you find one that feels right for you.

That means, three business days after you make a purchase or sale the trade is settled. On this day you will be required dis stock quote market watch pay for if buying or will receive the money if selling proceeds from your transaction.

If you are using an online broker, you will be required to have money in your online broker's bank account when you place a trade.

This "covers their butt" and ensures you will have the funds to pay for your purchase come settlement day. Gone are the days of being issued share certificates. When you buy a share you are able to sell it instantly. Instead of certificates, you are allocated a number which corresponds to your easiest futures to trade share holding.

There are two numbers you can choose to be allocated. Securityholder Reference Number SRN - Is a 10 digit number preceeded by the letter "i". This means your share is "held" by the share registry and this number is specific to your exact share holding in that specific company.

If you only use SRN's, you will have a different SRN for every different company you hold shares in. Holder Identification Number HIN - Is a number that is preceeded with the letter "X". This means your shares are held with your stockbroker. You still own them, so even if the stockbroker goes bankrupt, you have complete ownership and access to your holding.

Using a HIN is easier than using SRN's, especially if you only use one stockbroker, as you can hold as many shares as you like on one HIN, making managing your portfolio much easier.

Once you have established a share portfolio, it's important to monitor it regularly. If you are a long-term investor, it's wise to only monitor it every week or so. If you check more often that weekly, you will be distracted by market "noise" which is the daily fluctuations of the market.

If you are a short or medium-term trader, then daily monitoring may be required. Intra-day monitoring should only be done by those with very short investment timeframes i. Both online and full-service stockbrokers will give you access to their website to monitor exactly what your portfolio is doing. If you would like a portfolio manager ASX Trade Ledger to make monitoring your portfolio and transactions a breeze then signup to our trial membership. You can cancel at anytime during the first 30 days and still keep the Excel spreadsheet.

Absolute Investor Pty Ltd ABN 92 is a corporate authorised representative of Cygnet Securities Australia Pty Ltd AFSL As the website does not take in to account your individual financial circumstances, you should consider talking to a financial adviser before making an investment decision. For more information about our services, please read our Financial Services Guide. Past portfolio returns are not a reliable indicator of future returns.

Investing in shares involves risk, including loss of principal. While this website has been prepared and is updated with due care and attention, economic circumstances change with time and therefore no liability is accepted by Absolute Investor Pty Ltd, its related entities, agents and employees for any loss arising from reliance on the information contained in this website.

Home How it Works Broking Service About Us Join Here Contact. How to Buy Shares in Australia The process of buying and selling shares in Australia is actually rather simple. Why do you want to buy shares? First, establish whether you hold your shares on SRN or HIN. If they are on SRN you must notify your broker of the number so the can "locate" your shares prior to selling them.

If they are on HIN the broker will already have an accurate record of what you own so the sale can be done immediately. Secondly, identify the exact selling price you wish to sell at.

If there are adequate buyers at that level, the trade will go ahead. If the price is not lower than the other sellers wanting to sell their shares, then you must wait in queue at that desired price.

You can either sell at that price provided there is enough volume at that level or place it at a higher price e. If you are using a full-service broker you should ask for a recommendation as to where to place the order and they will do so accordingly. If they feel the stock will move up throughout the day, they may recommend you to wait until the end of the day before selling the stock. If they feel the stock will fall, they will sell immediately on your behalf. If all this sounds too hard, try our broking service.

Matthew Roberts has a keen eye for detail, and can walk you through the process of how to buy or sell shares on the ASX in a step-by-step manner.

Absolute Investor provides general share market advice only. Email us now Mon - Fri 9: Stock Tips Buy Shares Videos FAQ.